The Intangible Cost of Conflict
The Intangible Cost of Conflict
Abstract
Conflict is an inevitable circumstance in today’s society. People vary in many perspectives such that the possibility of failing to reach an agreement is high. Organizations are not exceptional from the other institutional frameworks within the society. Business corporations, non-profit organizations, profit organizations, and even governments all succumb to conflict because of the varied nature of the people who run them. Conflicts exist at all levels within the organizations, and it has cost implications. The cost of conflict is often intangible such that it is not easy to determine the implications in terms of the cost that the organization incurs in cases where there is a conflict. Its intangible nature means that the cost of conflict is not fundamentally material in nature. In fact, it is not possible to establish the monetary value of the cost of conflict because some of it may be effects suffered by people in terms of personality. Such effects are not measurable in terms of money.
The Perspective of Conflicts
In approaching the question of conflict within the organizations in the world today, there are two perspectives in which cost applies to conflict. First, organizations must always work towards resolving conflicts. The measures taken in resolving these conflicts have cost implications to the organizations (Cowan, 2003, p. 2). It requires resources in terms of capital and labor to implement the policies in place to resolve the conflicts that exist within the organization. Therefore, the organization begins to incur intangible cost at the conceptualization of the possibility of conflict. It emanates from the need to prevent the conflict and resolve it whenever it happens. On the other hand, the organization still incurs intangible costs whenever the management does not pay attention to existing conflicts within the organization. Here, the organization incurs costs because the effects of the unresolved or ignored conflicts always accrue to the organization. Consequently, organizations still incur certain intangible costs either if they resolve organizational conflicts or if they fail to do so.
Actual Costs of Conflicts
First, the actual costs of conflicts result from the measures taken by the organization to resolve conflicts. In this context, the nature of the workplace comes into play. The first measure required by the organization is to make the organization resilient to the occurrence of conflicts. A workplace resilient to conflict has strong interpersonal relationships among the employees and good communication (Rahim, 2001, p. 3). They are in a good position to understand each other. The interpersonal relations and effective communication receive support from the organization’s board towards the lower levels of management. In this working environment, the organization does not primarily rely on the contemporary methods of resolving disputes. However, the emphasis lies on good communication and strong relationships among the people to suppress the possibility of conflict to a minimum level. It guarantees early management of possible conflict and effective response in cases where the conflict emerges. As such, the organization manages to cut down the cost of formal processes used in resolving disputes. A workplace that is resilient to the emergence of conflicts condones the integration of strong diagnosis of conflicts. It evaluates a problem by initially focusing on the causes of the conflict. Afterward, it looks at the best possible response. For instance, the best response could be the adjudication of the conflict by a neutral third party. Another possible response is the use of approaches that do not condone confrontation. They include mediation, face-to-face conversations, and facilitation of conflict resolution. Workplaces that are resilient to conflict emphasize the prevention of conflicts rather than the actual resolution of the conflict. Such prevention requires the organization to implement policies and structures that enable regular feedback. To manage such structures oriented to feedback, the organization may have to invest heavily in terms of paperwork, implying additional costs. In this context, the organization uses the resources at hand to suppress the possibility of conflicts emerging (Dreu, & Gelfand, 2008, p. 4). Therefore, the cost of conflict is virtual in nature and scope because the organization is investing in the prevention of speculated events.
Secondly, organizations incur intangible costs of conflict before they happen through the mere fact of conflict awareness. Conflict awareness acts as a motivational factor for the organizations to brace themselves for the occurrence of conflict and formulate the disciplines and insights required to address the conflicts in a positive and constructive manner. The objective is often to create awareness among the individuals in the organization to be aware of the cost implications of conflict prior to them engaging in the actual conflict (Yu-xian, 2013, p. 4). On that note, the organization still incurs costs in its objective of creating awareness. The reaction of the human resources within the organization is often reactive when it comes to dealing with conflicts. It is a common practice to have regular meetings, seminars, consultations, and other interactive sessions in the organization. In other cases, employees have to undergo training on how to deal with conflict before it even emerges. All the sessions aim at developing a workforce with an orientation towards conflict prevention rather than the resolution of the conflict after it happens. On the same note, it is important to note that sessions emphasizing the prevention of conflict in the workplace seem t reduce the cost of the actual conflict. However, they also require some input from the organization in terms of the money and time. The organization will need money to organize, run, and manage the sessions it holds in light of conflict prevention. Such money accruing to the activity is also part of the intangible conflict because the organization has the notion that preventing the conflict mitigate the cost of resolution.
Time is an important resource in the organization. The level of productivity in the organization relies on the amount of time that the human resources and the capital inputs dedicate towards the achievement of the goals of the organization. Focus on the prevention of conflict to minimize the costs of conflict implies that the organization allocates maximum time to the sessions and the training that the employees must undergo (Dana & Bourisow, 2006, p. 5). Therefore, it costs the organization in terms of the time it commits in the achievement of its core objectives because managing conflict is secondary to all the other organizational objectives. It exists because of the presence of a several people within the workforce of the organization, and it is apparent that they will have conflicting views, opinions, judgments, and opinions over some issues. Consequently, spending too much time on prevention of possible conflict is a cost to the organization because it has a negative impact on how effectively the organization can achieve the primary goals set within its mandate.
Intangible Costs of Advanced Conflicts
After the comprehensive evaluation of the intangible costs of conflict prevention in the organization, the next analysis shall center on the costs of conflicts that proceed beyond the stage of prevention. In fact, not all organizations pay adequate attention to the prevention of conflict. Such organizations often wait for the conflict to occur, and then take measures to remedy the situation. The measures taken vary according to the particular facts of each conflict (Yu-xian, 2013, p. 5). The parties involved in the conflict also determine the type of measures taken by the organization in a bid to resolve the conflict. For instance, the organization will not handle a conflict among the junior employees in the same manner as the conflict between the two or more senior managers. It is right to assert that organizations still experience some costs if they ignore the possibility of conflicts occurring. If the human resources disagree on many occasions, it is important for the organization’s management to consider available solutions. Ignoring the conflicts and taking particular actions in their resolution have an implication of intangible costs on the organization.
The least recognizable intangible costs in organizations are unmanaged conflict among employees. It is a highly reducible cost, which makes organizations to ignore it on a regular basis. In fact, managers rarely notice conflicts among the employees because they often pay little attention to the manner in which they relate (Cowan, 2003, p. 6). Estimations indicate that over 65 percent of the problems related to the performance of the employees emanate from the strained and poor relations they have with their workmates. They do not necessarily stem from proposed deficiencies in the level of their skill and technical expertise. The corporate world is a highly competitive sector, hence conflicts often emanate from perceived competition among the employees. They seek to improve their social status and financial consideration in organizations, even if it means disagreeing with others intentionally. In the end, the resultant effects lead to lack of trust between the employees, as they often perceive each other as organizational rivals rather than potential allies with mutually beneficial relationships. At this stage, the conflict is often suppressed as the employees feel the need to compete among themselves, but they lack a tangible reason for confrontation. On that note, the organization begins to incur the intangible cost of conflict marked by degenerating channels of official communication. In most cases, such organizational conflicts lead to the preferred use of gossip as the employees seek to overpower the others. Breakdown of communication channels also results from a reluctance to give feedback to possible superiors because they do not want to feel subordinated. The top-level management may not notice the presence of the conflict because the impacts are not very superficial. In real sense, the organization takes longer to in the decision making process because the human resources cannot work through consultation and reach an amicable solution. Significant levels of tension and withdrawal of participation by employees, who feel that they are losing the battle for supremacy, mark most of the interactive sessions in the organization (Rahim, 2001, p. 7).
In addition, diminishing organizational output is also another intangible cost of conflict. In most cases, organizations have an orientation towards profit, and they always gage their performance based on the amount of revenue they generate in the course of their financial years. According to the management, profit is the sole measure of performance in the organization. There is minimal focus on other forms of output and as long as the organization is generating incremental profits. Then it does not pay attention to other areas. However, other important areas in the organization also need some form of assessment to indicate the overall performance of the firm in the corporate world. One important area is the growth and development of the careers of the employee. In a good organization with efficient levels of output, there should be channels to allow the growth of the employees in terms of their career goals (Dana & Bourisaw, 2006, 7). They should be able to move from junior positions to better ones within the organization. On the other hand, the organization can also prepare them for other senior positions in alternative organizations in case the firm they work in does not have adequate opportunities for their growth. The ability to grow and mold employees into better managers is a characteristic of efficient levels of output. In organizations dominated by conflicts, it is difficult for employees to grow and develop from junior positions. A lack of understanding within the organization implies that the management will not pay attention to the progress and achievements made by the employees. As such, they insist on the employees to continue working and delivering services at the same level. In the end, there is an overall feeling of career stagnation in the organization as most of the employees fail to derive feedback of performance in their career. In addition, conflict also implies that the managers will not be willing to avail the corporate opportunities to the rest of the employees. A feeling of career stagnation dominates organization riddled with conflicts. It is an intangible cost of conflict I n the sense that the organization does not offer adequate incentives to empower its existing work force. Therefore, since the human resources are stagnant in the context of career development, the output of the organization will also decline. Limited growth implies that the organization will be incapable of sustaining a competitive advantage it requires in the corporate world. In the end, the effects emanating from the conflict within an organization accrue to other sectors of determining a productivity such as financial profits.
Most organizations seem to pay little attention to the subsequent effects of organizational conflicts on the health of the employees. Organizations derive their human resources from people with different backgrounds, abilities, and mechanisms of response. In this light, some employees are better at handling conflicts and managing rivalry than others within the same organization is (Dana & Bourisaw, 2006, 8). Frequent arguments imply that some employees have a hard time coping with the structures of the organization. For instance, if a subordinate has to report to a senior officer who feels threatened by the employee’s commitment, then it is difficult for an employee to approach such a managers on a regular basis. In the end, employees tend to associate their job with mental stress and poor relationships with other people. Consequently, they may begin to experience some health difficulties due to work related issues. The problem is worse in today’s corporate world. There are limited opportunities for employment hence making it difficult for the employees to switch from one workplace to an alternative organization. The cost accrues to the organization in the sense that it contributes to diminishing output at the organization. Due to stress, the rate of employee absenteeism will be high given that most of them will be attending to their medical attention. The organization may incur further costs about the employees in terms of the medical cover allowances offered to them. The high rate of absenteeism means that they have lesser time attending to matters of the organization or working towards the achievement of the organizational goals. In advanced cases, employees may even develop poor relationships with their families because of the paranoia derived from bad experiences at the workplace. Incidences of depression and anxiety often have contributing factors from stress at the workplace.
Lastly, the intrinsic costs of conflict incurred by the organization relates to the actual costs incurred in combating conflicts whenever they ensue. The organization cannot afford to fire all the employees involved in conflicts because they are a normal aspect of the organization. Therefore, it is necessary to invest in resources that initiate the steps of conflict resolution aimed at restoring the peaceful co-existence of the conflicting employees (Cowan, 2003, p. 9). It may take the form of arbitration, where a neutral third party intervenes to help the conflicting parties to reach an amicable solution. It may also happen through mediation, which may not involve a third party. The parties in the conflict may decide to reach a mutual consensus especially of the solution is for the greater good of the organization. Lastly, legal interventions are also an available mechanism of resolving conflicts. Here, the parties often feel that the court is a better position to solve the conflict especially if one of them is seeking the remedy of legal damages.
References
Cowan, D. (2003). Taking charge of organizational conflict: A guide to managing anger and confrontation. Fawnskin, CA: Personhood Press.
Dana, J. A., & Bourisaw, D. (2006). Women in the superintendency: Discarded leadership. Lanham, MD: Rowman & Littlefield Education.
Dreu, C. K., & Gelfand, M. J. (2008). The psychology of conflict and conflict management in organizations. New York: Lawrence Erlbaum Associates.
Rahim, M. A. (2001). Managing conflict in organizations. Westport, CT: Quorum Books.
Yu-xian, Z. (2013). A Study of Sino-Indian Business Negotiations-from a Cross-cultural Perspective.
